C5 -organizational_ethics_compatibility_mode_

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  • 1. ORGANIZATIONAL ETHICSETHICS
  • 2. Topic Outcomes At the end of this chapter, students should be able to: Explain the ethical issues in various 2 Explain the ethical issues in various components of organization.
  • 3. Organizational Culture & Ethical Climate Organizational culture can be defined as values, beliefs, and norms shared by all employees of that organization. In most organizations, a moral atmosphere can be detected – people can feel and pick subtlebe detected – people can feel and pick subtle hints and clues that tell them what behavior is approved and what is forbidden. The unspoken understanding among employees of what is and is not acceptable behaviour is called ethical climate.
  • 4. Business Ethics Across Organizational Functions Supply Chain Management Operation Distribution Sales & Marketing Service Primary Functions/ Activities Product R&D, Technology, and System Development Human Resource Management Accounting and General Administration SupportFunctions/ Activities
  • 5. Ethics in R&D • R&D carries responsibility for company’s growth – without new product to sell, organization can lose customers. • R&D incorporate customers feedback from market research – however, this tie with responsibility toresearch – however, this tie with responsibility to produce product of the highest quality, safety, and reliability i.e. defective product not only put customer at risk, they also generate negative press coverage & very expensive lawsuit. • Discussion: Is Proton being ethical when producing car of quality what people claims as “tin sardin” quality?
  • 6. Ethics in Manufacturing • Manufacturer faces with question of “do you want it built fast, or do you want it to be built right?”. • From an organization perspective, you want both, especially if you know your biggest competitor also racing to put a new product on the market, and ifracing to put a new product on the market, and if they get there before you do, your sales projection will not be met. • Questions: You want to build product with precise design specifications, but what if there is supply problem? Do you wait and hold up delivery, or do you go with an alternative (and less reliable) supplier?
  • 7. Ethics in Marketing • Relations with customers tend to generate many ethical problems. The marketing processes i.e. advertising, pricing, public relations, and sales – are potential problem areas. • Discussion:• Discussion: 1) What role does marketing play in the perception that coffee brewed at Starbuck is superior than coffee brewed at home? 2) What role does McDonald play in promoting McDonald HappyMeal for kids when almost all of its products categorized as unhealthy?
  • 8. Ethics in Human Resource • HR is an important function in an organization. • The HR processes are also pruned towards unethical business conduct. • Discussion: 1) Interview held for pre-chosen candidates.1) Interview held for pre-chosen candidates. 2) Monitoring staff using CCTV. 3) Taking disciplinary action to staff for the statement from facebook. Can employer monitor staff posting through facebook and take disciplinary action against the staff based from his posting?
  • 9. Ethics in IT • IT is one of the fastest growing areas in business ethics. • Ethical challenges such as invasions of privacy; the collection, storage, and access of personal andcollection, storage, and access of personal and business information especially through e-commerce transactions; confidentiality of electronic mail communication – are some of ethical issues in IT. • Issue: Selling of customers personal details to marketing company.
  • 10. Building Ethical Safeguard into Company How to control unethical issues or conduct in organization or promote ethical behaviour: 1) Top Management Commitment and Involvement 2) Ethics Policies or Codes2) Ethics Policies or Codes 3) Ethics Officers, or Compliance Officer 4) Ethics Audit 5) Whistle Blowing Policies 6) Corporate Ethics Awards
  • 11. Building Ethical Safeguard into Company How to control unethical issues or conduct in organization or promote ethical behaviour: 1) Top Management Commitment and Involvement 2) Ethics Policies or Codes2) Ethics Policies or Codes 3) Ethics Officers, or Compliance Officer 4) Ethics Audit 5) Whistle Blowing Policies 6) Corporate Ethics Awards
  • 12. Conflict of Interest “A situation where one relationship or obligation places you in direct conflict with an existing relationship or obligation” Discussions: 1) How to overcome the issues of conflict of interest? 2) In a case where your personal interest conflict to organizational interest, which interest should comes first?
  • 13. Self-check Exercise Instruction 1) Watch the video. 2) Identify what kind of ethical issues exist in the video and discuss to your classmates.
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